Flanagan & Gerard Property Group’s portfolio recorded strong December trade with seven of its 10 malls recording double-digit turnover growth, managing director Paul Gerard said.
The portfolio’s turnover grew by 12 percent from December 2020 to December 2021, while this December’s turnover was also up nearly 9 percent on pre-pandemic figures of December 2019.
Regional malls: Mall of the North in Polokwane, Limpopo, and Ballito Junction on the Dolphin Coast of KwaZulu-Natal, reported record turnovers this December, both topping R350 million, he said in a statement on Friday.
Shopper numbers across the portfolio grew seven percent in December, although this was slightly short of footfall levels in December 2019. However, the size of shoppers’ baskets had grown considerably, so it was still driving higher turnovers.
The company’s data signalled that while Black Friday spending spikes weren’t comparable to previous years, the late November retail landmark still served as the kick-off for the festive holiday and back-to-school shopping, he said.
Gerard said their turnover figures suggested that shoppers opened their wallets in November after holding back spending during September and October to save up.
Retail categories that outperformed in December included groceries, liquor sales, menswear, athleisure, shoes and electronics. Home ware showed good trading, but turnover didn’t reach the growth highs of 2020.
Sporting goods underperformed in December, but traditionally peaked in January when schools and sports clubs re-open.
Some spending trends noted in December 2021 were regional, such as the outperformance of jewellery, eyewear and toy retail at coastal shopping centres.
Restaurants and cinemas fared relatively well in the portfolio this December.
Gerard said while the international reaction to the news of the omicron variant halted foreign tourism, many South Africans cancelled their overseas travel, and domestic retail benefited from their local spend during the holiday season.
“This festive season was largely disruption-free and operationally supportive of retail, and 2022 is already off to a great start with January footfalls to date ahead of 2021. All signs point to sustained positive growth in the year ahead,” he said.
The company develops and invests in dominant regional shopping centres and high-end niche community centres.
Flanagan & Gerard developed and co-owns Ballito Junction Regional Mall in KwaZulu-Natal as well as Morningside Shopping Centre, Springs Mall and Vaal Mall in Gauteng, together with Highveld Mall and Middelburg Mall in Mpumalanga, and Thavhani Mall, Musina Mall, Great North Plaza and Mall of the North in Limpopo.
The portfolio has a low vacancy rate of 0.3 percent, and almost all the rental deferred to help affected tenants through the shock of the Covid-19 lockdowns had been collected, Gerhard said.
The company plans to open the first phase of the 24 000 square metre Boardwalk Mall in Gqeberha on March 24. The rolling out of the Thavhani City development in Thohoyandou would continue - the mixed-use urban precinct includes motor dealerships, big-box value retail and medical services around its top-performing Thavhani Mall, which is designed to be the future economic hub of North Eastern Limpopo.
Flanagan & Gerard also planned to have all its malls function fully during power disruptions, using a combination of renewable energy and backup generation.
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